NTPC share sale over-subscribed; govt to get about Rs 11,400 crore

NEW DELHI: NTPC's mega share sale was over- subscribed just before the market close today, helping the government fetch close to Rs 11,400 crore -- the biggest disinvestment proceed this fiscal.

The auction, which started in the morning, got bids for over 84.06 crore shares as of 1505 hrs, against an offer of over 78.32 crore, as per data on the stock exchanges.

The indicative price, which is the weighted average price of all valid bids, was Rs 145.46 a share. At this price, the government would garner at least Rs 11,392 crore.

The government had fixed the floor price for the 9.5 per cent share auction of NTPC at Rs 145 apiece.

Shares of NTPC were quoting at Rs 148.50, down 2.50 per cent from its previous close on BSE. During the trade, NTPC scrip fell to a low of Rs 147.65.

Bids for over 43.49 crore shares were with 100 per cent margin, meaning if the bidder decides to withdraw later they can do so. Bids that came in with zero per cent margin were over 40.56 crore shares, according to the NSE data.

The final bids and the cut-off price is likely to be announced later in the day after the stock exchanges compile all data.

The government is selling 78.32 crore shares or 9.5 per cent of its stake in NTPC through the offer for sale route.

Government holds 84.50 per cent stake in NTPC. After stake sale, its holding will come down to 75 per cent.